456

LAWS OF MARYLAND

Ch. 33

(B)   REGULATION OF PROFIT ALLOCATIONS.

(1)   IN ACCORDANCE WITH THIS SECTION, THE BOARD
OF COMMISSIONERS SHALL REGULATE THE TIMES OF AID METHODS FOR
DETERMINING THE ALLOCATIONS OF PROFITS TO THE GENERAL
RESERVE FUND, SURPLUS ACCOUNT, AND UNDIVIDED PROFITS
ACCOUNT.

(2)   THE BOARD OF COMMISSIONERS MAY WAIVE THE
REQUIREMENTS OF THIS SECTION IF:

(I)   GOOD CAUSE IS SHOWN;

(II)   A SAVINGS AND LOAN ASSOCIATION
MAINTAINS THE STATUTORY 6 PERCENT GENERAL RESERVE FUND; AND

(III)   THE PUBLIC INTEREST IS ADEQUATELY
PROTECTED.

(C)   MINIMUM RESERVE ALLOCATION.

IN ACCORDANCE WITH THE REGULATIONS OF THE BOARD OF
COMMISSIONERS, A SAVINGS AND LOAN ASSOCIATION SHALL ALLOCATE
AT LEAST 5 PERCENT OF ITS PROFITS THAT HAVE ACCRUED SINCE
THE LAST ALLOCATION OF PROFITS TO THE GENERAL RESERVE FUND
AND SHALL CONTINUE TO TRANSFER THAT AMOUNT AT EACH
ALLOCATION OF PROFITS UNLESS AND UNTIL THE GENERAL RESERVE
FUND EQUALS AT LEAST 6 PERCENT OF THE AGGREGATE WITHDRAWAL
VALUE OF THE FREE SHARE ACCOUNTS IN THE ASSOCIATION..

(D)   ADDITIONS TO NET WORTH ACCOUNTS.

IN ACCORDANCE WITH THE REGULATIONS OF THE BOARD OF
COMMISSIONERS, WHEN THE GENERAL RESERVE FUND EQUALS AT LEAST
6 PERCENT OF THE AGGREGATE WITHDRAWAL VALUE OF FREE SHARE
ACCOUNTS IN AN ASSOCIATION, THE SAVINGS AND LOAN ASSOCIATION
SHALL ALLOCATE AT LEAST 5 PERCENT OF ITS PROFITS THAT HAVE
ACCRUED SINCE THE LAST ALLOCATION OF PROFITS TO ITS GENERAL
RESERVE FUND, SURPLUS ACCOUNT, OR UNDIVIDED PROFITS ACCOUNT
AND SHALL CONTINUE TO DO SO UNLESS AND UNTIL THE SUM OF THE
GENERAL RESERVE FUND, THE SURPLUS ACCOUNT, AND THE UNDIVIDED
PROFITS ACCOUNT EQUALS AT LEAST 10 PERCENT OF THE AGGREGATE
WITHDRAWAL VALUE OF THE ASSOCIATION'S FREE SHARE ACCOUNTS.

(E)   SPECIAL RESERVES.

(1)       A SAVINGS AND LOAN ASSOCIATION MAY HAVE
SPECIAL RESERVES.

(2)       THE BOARD OF DIRECTORS OF A SAVINGS AND LOAN
ASSOCIATION SHALL DETERMINE CHARGES TO SPECIAL RESERVES.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 23, § 161EE.

In subsection (c) of this section, the reference
in present Art. 23, § 161EE(a) to allocation by